The European Union will cut its anti-dumping tariffs on Argentine and Indonesian biodiesel by more than half to bring them in line with a ruling on the matter by the World Trade Organization (WTO).

The WTO ruling from early 2016 concluded that the EU’s duties on the imports were in violation of trade rules due to the cost adjustments investigators had made during the probe, MLex Market Insight wrote on 14 July.

The duties would be cut by up to 10.6% for Argentine and by up to 6.9% for Indonesian biodiesel, according to the market insight firm.

In 2013, the EU imposed a duty of up to 25.7% and 20.5% on biodiesel from Argentina and Indonesia, respectively, which equalled approximately €245.6 (US$287.9) and €178.8 (US$204.8) per tonne.

Before the tariffs were put in place, EU officials increased the assessed dumping levels during the probe to include differential tax rates of the raw materials – such as soyabeans and palm oil – used to produce the biodiesel in Argentina and Indonesia.

These materials had high export taxes, which meant they generally stayed in the domestic market, thus creating a surplus and resulting in lower prices, according to MLex.

However, the EU tax on biodiesel exports was lower, which the EU officials concluded to mean that the fuel producers were being indirectly supported by their governments.

Argentina and Indonesia both filed complaints on the tariffs with the WTO, which sided with the producing countries and ordered the EU to refund the tariffs that had already been paid.

To comply with the trade arbiter ruling, the European Commission recalculated the dumping tariffs without the cost adjustment.